Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : CompUSA (CPU) -- Ignore unavailable to you. Want to Upgrade?

To: Smart Investor who wrote (1681)	3/16/1999 5:36:00 PM
From: David B.	Read Replies (1) \| Respond to of 3187

New to CPU. Don't know much about the CEO, but I like the position this company COULD find itself in. They seem to be covering all the distribution channels, retail, direct, to consumer and corporate markets (with feet on the street). They're entering the BTO game--commodity, low margin. They're into services (high margin), they're into training (high margin). Soon they'll be able to reposition themselves as something much more than a computer store. If they're smart they'll increase inventory turns with the new ERP system. In store, they can steer customers to compusa.com to fulfill out-of-stock orders. They have experience with the "store within a store" concept (higher margin)--Apple. They can extend this concept to other vendors. Like this a lot. As they grow they have increased buying power, they get increased $ from vendors for co-op advertising/marketing expenses. Computer City stores should start to perform better. Digital TV is coming. More services to sell all the time. It's not such a bad business to be in. It has be worth more than $5.60/share.